Blankfein Says Europeâs Leaders Will Move to Calm Debt Crisis

May 7 (Bloomberg) -- Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said heâs confident European leaders will find a way out of the Greek debt crisis, and they need to bolster flagging investor confidence.

âThe market needs to be calmed down,â Blankfein said in a Bloomberg Television interview today after the annual shareholder meeting in lower Manhattan. He compared the loss of confidence among investors to events in 2008, when credit markets froze. âWeâre dealing with sentiment,â he said.

Blankfein said heâs âreasonably confidentâ that sovereign nations will get together to find a solution.

Daal, look at this. Is this article saying the investment banks try go short the bond, then collect on the swap they buy on this bond? For example now the (iTraxx Sov X Western European index) show the swap insurance on the Greek debt is very expensive. Can you explain?http://www.bloomberg.com/apps/news?sid=afqSQVO0wnqI&pid=20601087

Daal, look at this. Is this article saying the investment banks try go short the bond, then collect on the swap they buy on this bond? For example now the (iTraxx Sov X Western European index) show the swap insurance on the Greek debt is very expensive. Can you explain?http://www.bloomberg.com/apps/news?sid=afqSQVO0wnqI&pid=20601087